Should you buy these ASX 200 dividend shares for income?

Analysts have given their verdict on these income options. Are they buys this month? Let's find out.

| More on:
Couple holding a piggy bank, symbolising superannuation.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are plenty of dividend shares to choose from on the ASX 200 index.

Two popular options are listed below. But are they buys this month? Let's see what analysts are saying:

NIB Holdings Limited (ASX: NHF)

NIB could be an ASX 200 dividend share according to analysts at Goldman Sachs.

The broker likes the private health insurer due to the positive outlook for its core and non-core businesses. Goldman explains:

We have a Buy on NHF reflecting 1) Strong growth / recovery in non-ARHI businesses especially in Travel and IIHI. 2) Strong PH growth and market share gains in ARHI. 3) Buffers built across ARHI expenses, investments, write downs and provisioning that can be unwound to support UOP growth over time.

As for dividends, Goldman expects fully franked dividends per share of 31 cents in FY 2024 and 33 cents in FY 2025. Based on the current NIB share price of $7.39, this will mean 4.2% and 4.5%, respectively.

Goldman has a buy rating and $8.75 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share that is popular with income investors is Transurban. It is Australia's largest builder, owner, and operator of toll roads.

Analysts at Bell Potter believe that the company's shares are in the buy zone right now and are tipping generous yields and sizeable upside. The broker commented:

We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.

Bell Potter has a buy rating and a $15.90 price target. As for income, it expects a 5% dividend yield in FY 2024.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Transurban Group. The Motley Fool Australia has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

2 of the best ASX 200 dividend shares to buy next week

Analysts have good things to say about these income options.

Read more »

A happy older couple relax in a hammock together as they think about enjoying life with a passive income stream.
Dividend Investing

$10,000 of Fortescue shares could net me a $1,011 yearly passive income!

There are good reasons many ASX passive income investors own Fortescue shares.

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

Forget term deposits and buy these ASX dividend stocks

Analysts think these stocks would be great options for income investors.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

I'd buy 25,000 shares of this ASX stock for $4,000 a year in passive income

I really like this stock for its dividend credentials.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

Want the latest ResMed dividend? Here's what you need to do

The cutoff for ResMed's latest payout is fast approaching.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

Here's everything you need to know about the latest Macquarie dividend

Macquarie Group Ltd (ASX: MQG) shares are under pressure on Friday. This follows the release of the investment bank's half…

Read more »

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.
Dividend Investing

2 highly rated ASX dividend stocks to buy this month for an income boost

Let's see what analysts are saying about these stocks.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

These ASX dividend shares could be top buys in November

Analysts think these shares could be great options for income investors.

Read more »